Many are now looking to ‘lock-in’ the current available rates in a long-term fixed mortgage ahead of any more potential rate increases – but is this the right thing to do?
The number of remortgages have increased by more than a quarter between March and April. Over 50% of borrowers took out a five-year fixed rate product. With rates on the rise, it’s essential you take the time to review your current mortgage. If you’re currently on a variable rate plan or your fixed rate term is coming to an end soon, now could be the perfect time for you to lock in a new long term fixed rate mortgage before rates potentially get significantly higher in the coming months. Along with locking in your repayment rate, remortgaging now offers a unique opportunity for those worried about making money stretch amid the cost-of-living crisis.
Releasing equity in your property, by remortgaging, can be the perfect solution to being a little more comfortable as energy prices and inflation both continue to rise. Remortgaging can still offer other benefits. Maybe you’re considering some home improvements? A conservatory? Maybe a home office?
Whatever you may be considering, home improvements can be expensive. Remortgaging can make lump sums available to you to nance such projects so that you don’t have to save and could get the work done while the summer weather is (hopefully) warm and dry.
Remortgaging isn’t for everyone, but it does currently offer unique opportunities to take advantage of. If you just want to secure lower mortgage rates for the coming years, want some spare cash to help you through the cost-of-living crisis or maybe you want to add value to your property by doing some home improvements – whatever the reason, remortgaging could be the answer.
If you’d like to discuss the options available to you, contact your adviser today.
Source: Mortgage Intelligence
Photo by Max Vakhtbovych / Pexels
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